Three Former SABC Executives Ordered to Repay more than R11.5 million Unlawfully Paid to Hlaudi Motsoeneng

Johannesburg – The Special Investigating Unit (SIU) has secured a landmark ruling in the Johannesburg High Court, holding three former executives of the South African Broadcasting Corporation (SABC) liable for unlawful payments made to former COO Hlaudi Motsoeneng.

Judge Allyson Crutchfield ruled that Mbulaheni Obert Maguvhe, Ndivhoniswani Aaron Tshidzumba, and Maleshane Audrey Raphela must jointly repay R11.5 million, plus interest dating back several years, bringing the total debt to approximately R18 million.

This judgment follows years of legal wrangling, with Motsoeneng unsuccessfully challenging the matter at both the Supreme Court of Appeal and the Constitutional Court.

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Details of the R18 Million Unlawful Payout

The controversy stems from September 2016, when the three executives approved so-called “success payments” to Motsoeneng for his role in securing a deal with Multichoice. While the payout was justified internally as recognition for generating over R1 billion in revenue, the SIU found it to be unlawful and contrary to proper governance at a state-owned entity.

Motsoeneng initially received R11.5 million. Although the SIU recovered R6.4 million from his pension fund, a significant shortfall remained. The new High Court ruling ensures that the burden of repayment now falls on the executives who authorized the transaction.

Court Ruling and Accountability

Judge Crutchfield’s ruling makes the three former executives jointly and severally liable, meaning the SIU can recover the full amount from any one of them if necessary. The court also ordered them to cover the SIU’s legal costs after they failed to oppose the application or appear in court.

The judgment empowers the SIU to pursue asset seizures and other enforcement mechanisms to ensure recovery. It further reinforces the watchdog’s mandate to reclaim public funds lost through irregular payments and corruption.

Broader Implications for the SABC and State-Owned Entities

The ruling comes as the SABC, like many other state-owned entities, continues to grapple with the legacy of state capture and mismanagement. The “success fee” saga reflects systemic governance failures that drained public resources at the height of the broadcaster’s financial instability.

Legal experts suggest the judgment could set an important precedent for holding executives personally accountable for irregular decisions, rather than allowing state-owned entities to absorb the losses.

The SIU welcomed the ruling, describing it as a “significant step in restoring accountability” and a reminder that public office bearers cannot enrich themselves or others without consequence.

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Looking Ahead

With the debt now enforceable against Maguvhe, Tshidzumba, and Raphela, the SIU is expected to initiate recovery processes, including the attachment of assets.

For South Africans, the outcome signals progress in the fight against corruption and a clear message that the misuse of public funds will not go unpunished.